Biggest MLP losers of February 2017
CVR Partners (UAN), the MLP formed by CVR Energy (CVI) to own and operate its nitrogen fertilizer business, was the worst performing MLP last month. The huge decline in UAN’s stock price can be mainly attributed to its weak 4Q16 earnings. UAN’s 4Q16 earnings were negatively impacted by lower ammonia shipments and lower realized prices.
USD Partners (USDP), which provides crude oil logistics services through its rail terminals, was the second-worst performer in February. The decline in USDP’s price could be attributed to the federal government’s executive orders relating to TransCanada’s (TRP) controversial Keystone Pipeline project. The government had invited TransCanada to submit a new application, which it did on February 16.
The Keystone XL Pipeline project is a proposed 1,179-mile pipeline. It begins in Alberta, Canada, and extends south to join the existing Keystone Pipeline in Steele City, Nebraska. The pipeline will have the capacity to transport 830,000 barrels of oil per day. Once complete, the pipeline is expected to bring down the movement of crude by rail from Canada. This might negatively impact USD Partners, which operates rail terminals in Canada. Atlas Energy Group (ATLS), Suburban Propane Partners (SPH), and American Midstream Partners (AMID) were among the MLP stocks that lost the most during February 2017.